Which of the Following Is an Implicit Cost of Production

question 267

Multiple Choice

Which of the following is an implicit cost of production?

• A)interest paid on a loan to a bank
• B)wages paid to labor plus the cost of carrying benefits for workers
• C)the utility bill paid to water, electricity, and natural gas companies
• D)rent that could have been earned on a building owned and used by the firm

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Definitions:

Percentages

Numerical values expressed as fractions of 100, used to describe proportions or ratios.

Dangling Modifiers

A word or phrase that modifies a word not clearly stated in the sentence, often leading to confusing or unintended meanings.

Grin

A broad smile indicating amusement, happiness, or satisfaction.

Standards

Established norms, criteria, or requirements that specify the expected levels of quality or performance.